All of the following,except one,are true at the output where a monopolist's marginal revenue is equal to zero? Which is the exception?
A)It is the output that maximizes total revenue.
B)It is the output that maximizes average revenue.
C)It is the output that is associated with the mid-point of the AR curve.
D)It is the output where average revenue must be greater than marginal revenue.

Question

Quizplus · Accepted Answer

When a monopolist's marginal revenue equals zero, it indicates the output level that maximizes total revenue, not average revenue. This point is also associated with the midpoint of the Average Revenue (AR) curve, where AR is still greater than Marginal Revenue (MR), which continues to decline. Therefore, the statement that it maximizes average revenue is the exception and not true.

All of the Following,except One,are True at the Output Where